Most homebuyers, even those just starting their first-time homeowner journey, have learned a thing or two about 30-year mortgages. For example, some 30-year mortgages will let you pay the mortgage down earlier than 30-years, while others may fix a prepayment penalty to that plan to make up the loss in revenue from the interest rate.
But what about some of the more uncommon questions and features of 30-year mortgages? Here’s a quick guide to understanding some nuances of 30-year mortgage rates:
Are there different 30-year mortgage rates?
While this question may seem obvious to some, there are a few tricky aspects about mortgage rates. One being the amount of options a homebuyer has when searching for a mortgage, which lends to several rate choices to pick from.
Mortgage rates often factor in a great deal of variables, such as buyer's market versus seller's market, personal financial health, economic stability, Federal Reserve action, mortgage lenders and a host of other facets. Once everything has been considered, lenders typically determine an individual mortgage rate for the specific potential homebuyer wanting to make an offer.
Are 15-year mortgage rates better?
Depending on your financial situation and what you want out of your loan, a 15-year mortgage could work out better for you. However, the same is true for a 30-year mortgage. So, how do you tell which one you should go for? Review your current monthly responsibilities.
For those wanting to keep their payments low and affordable, a 30-year mortgage may be a better fit since the monthly mortgage payment is likely to be lower than that of a 15-year mortgage. 30-year mortgages are also great for those who want to plan out their financial journey for the next few decades.
However, for those who may not want to be locked into a 30-year fixed mortgage with the potential for prepayment penalties, a 15-year may be a great option for you. Just remember, there’s a good chance your payments will be higher than those of a 30-year mortgage, depending on property and down payment, as does a 30-year.
What about jumbo 30-year mortgages?
For those wanting to purchase a larger home at a larger price point, 30-year fixed rate mortgages come in jumbo sizes. Jumbo loans are great for homes with higher price points and are often subject to the same base terms as your average fixed-rate mortgage. The difference is these loans typically have to exceed the average loans that cap their lending maximum.
What else should I remember about 30-year mortgage rates?
Mortgages can come in all varieties of sizes, shapes and interest rates. While an adjustable rate mortgage may fit some budgets (remember, these interest rates change throughout the loan), a fixed rate mortgage may give others security in knowing what their monthly payments will be year in and out.
Be sure to shop around for the mortgage that suits you best. However, don’t ignore your agent’s connections. They may know a lender who can get you everything you need in a mortgage and help you keep your financial health through the homebuying process.
About the Author
Tina Broyles, DRE 01009212 & NMLS 91630
Headline: Tina Broyles: Your Expert Real Estate Agent for Fremont, San Jose, and the Bay Area | eXp Realty
Bio:
As a dedicated real estate professional and a long-time resident of the California Bay Area, I have been proudly serving the real estate community since 1987. My mission is to provide my clients with unparalleled professionalism, in-depth market knowledge, and a caring approach that has resulted in a business built almost entirely on referrals.
Your Trusted Real Estate Advisor in the Bay Area
I specialize in the vibrant and diverse real estate markets of Fremont, Campbell, San Jose, Saratoga, Cupertino, Sunnyvale, Morgan Hill, Santa Clara, Mountain View, and Milpitas, CA. With over three decades of experience, I have a deep understanding of these communities and can provide you with the insights you need to make informed decisions.
One of the most consistent compliments I receive from clients is about my responsiveness to their needs. Your goals are my top priority, and I am committed to being there for you every step of the way. I am honored to have been voted "Best of Milpitas" every year from 2000 to 2020, a testament to my dedication to my clients and my community.
About My Business: eXp Realty
As part of the innovative eXp Realty team, I bring a diverse set of skills and a commitment to excellence to every transaction. We leverage cutting-edge technology that is "beyond expectation" to provide you with a seamless and efficient real estate experience. My team and I offer the perfect balance of experience and professionalism to help you achieve your real estate dreams in the Bay Area.
Community Involvement
I believe in giving back to the community that has given me so much. I am a happily married mother of two and a proud grandmother to two beautiful granddaughters, Audrina and Chesney. In my free time, I enjoy golfing, exercising, and my weekly Bible study. I am also passionate about serving the homeless community in Milpitas and supporting our local businesses.
I would be honored to get to know you and your family and put my extensive real estate experience to work for you.
Credentials:
